Economy

Sending that letter may soon cost you 30pc more

posta

Postal Corporation of Kenya (PCK) collecting letters. FILE PHOTO | NMG

The cost of sending letters locally and across East Africa will rise 30 percent under Postal Corporation of Kenya (PCK) proposed new rates as the agency seeks to ramp its dwindling revenues.

Under the revised rates that must get approval from the Communications Authority of Kenya, sending a letter weighing up to 20 grammes will increase to Sh110 from Sh85 reflecting a rise of 29.4 percent.

Letters weighing up to 50 grammes will now cost Sh195 up from Sh150 while the rate for those weighing up to 100 grammes has been increased to Sh340 from Sh265.

The move to increase the rates comes amid growing struggles by the State agency whose main service has taken a hit from Internet-based mailing systems and entry of private couriers into the sector.

“The Postal Corporation of Kenya Act No.3 of 1998, has applied to the Communications Authority of Kenya for approval to review their postage rates as necessitated by increased cost of service delivery,” PCK said last Friday. “The proposed review of is likely to affect the public, local authorities, companies, persons or bodies of persons within the Republic of Kenya.”

PCK has also proposed to increase the cost of sending post-cards to Sh40 up from Sh25 reflecting a rise of 60 percent.

The new rates will also see an increase cost for sending letters and post-cards depending on their weight across the globe even as its traffic continues to decline over the years.

The State agency last reviewed the cost of letters and post-cards in 2018 but declining numbers, competition from private couriers and entry of internet-based mailing system have prompted the latest review.

INTERNET DISRUPTION

Letters sent in the year to March fell 34.34 percent to 8.52 million letters from 12.97 million in a similar period last year, highlighting PCK’s continued struggles.

The sharp fall coincides with the growing coverage of fibre connections to homes and offices and Internet use that offer users faster and convenient web-based mailing platforms. There has been also an increase in the number of private couriers.

In March, PCK announced plans to reactivate 450,000 postal address boxes countrywide seeking to ride on the launch of its text message-linked service known as M-Post in partnership with Safaricom. PCK said it targets to grow its clientele by 150,000 following introduction of the text message-based alerts platform.

The reduction in revenues has further seen the State agency delay payment of staff salaries and failure to remit pension deductions worth ShSh1 billion.